Thomas & Betts shares rose after Leviton sale

Shares advanced $1.65, or 4.4 percent, to $39.32 in midday trading.

RBC Capital Markets analyst Amit Daryanani said the sale resolves a long-standing distraction for Thomas & Betts and should focus investor attention back to its core business.

Daryanani said the company's issues with Leviton date back to 2002, when Thomas & Betts said it had lost its influence at Leviton. He said the sale should give shares a boost.

Thomas & Betts spokeswoman Tricia Bergeron said that a change in Thomas & Betts's management in 2002 led to the loss of influence at Leviton and a change in accounting practices for its stake in the company.

She said Thomas & Betts sold its stake in Leviton not because of personal differences between the two companies, but because it is "in the best interest of our shareholders."

Daryanani maintained an "Outperform" rating on Thomas & Betts and $45 price target on the Memphis, Tenn., company.

Oppenheimer's Christopher Glynn also praised the sale. He called Thomas & Betts a "top pick" and reiterated his "Outperform" rating on the company.

Thomas & Betts said in a release after the close of trading Tuesday it was selling its 29.1 percent stake back to privately held Leviton and predicted the sale would add $1.70 per share to its second-quarter earnings.

Shares of Thomas & Betts have traded between $33.26 and $64.28 in the last 52 weeks.